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How to Enter the Chinese Market Safely?

Why is the Chinese market unique?

Entering the Chinese market offers major opportunities but requires serious preparation. Due to its size, regulatory complexity, and cultural differences, "Entering the Chinese Market" is more than just an export decision – it’s a strategic move. Hungarian SMEs and importers need to understand business customs, local competition, and regulatory demands like GACC, CCC, or GPSR certification.

Key preparations before market entry

Compliance with product standards

Most products require certifications before being cleared for the Chinese market. Food items may require GACC registration, electronics need CCC certification. Without these, customs clearance can be delayed or rejected.

Business model and pricing strategy

Different market entry models in China include:

  • working with a local distributor

  • direct online sales (e.g., Tmall, JD)

  • opening a local subsidiary

Some firms prefer a “retainer + commission” sourcing model to build long-term presence with lower risk.

Two common mistakes to avoid

1. Launching too fast, without a strategy

Many companies rush into China without localizing their product or understanding the regulatory landscape and key partners.

2. Overreliance on a single Chinese partner

It’s risky to depend on one distributor. As outlined in our [supplier risk guide], creating alternative channels is essential.

Best practices that truly work

1. Competitor analysis and positioning

Before entering China, analyze how similar products are positioned. Our [market entry guide] includes a ready-to-use benchmarking template.

2. Local presence or reliable partner

Business in China is relationship-based. Successful firms either have an office or assign a trusted partner to be on the ground, as described in our [sourcing services overview].

Choosing the right logistics setup

Choose between EXW (factory pickup), FOB (port delivery), or DDP (door-to-door). Each has a different risk–cost ratio. DDP is easier logistically, as the Chinese side handles all customs and delivery, but it’s costlier.

The key to safe market entry

The success of "Entering the Chinese Market" lies in detailed preparation, risk reduction, and building strong relationships. Experienced advisors or local partners ease both market entry and long-term success.

Cheers HUN Consulting Co., Ltd. (Shanghai) helps Hungarian SMEs enter the Chinese market using a retainer + commission sourcing model – sharing the risk with the client.

FAQ

Q: What certifications are needed for China market entry?
A: Depending on the product, GACC, CCC, CE, or other standards may be required.

Q: How long does it take to negotiate with a Chinese partner?
A: On average, 2–6 months before a meaningful relationship is established.

Q: Is an English website enough?
A: No. Localized Chinese content and WeChat compatibility are essential.

Q: Do I need to establish a Chinese company?
A: Not mandatory, but highly recommended for B2B sales.

Send an email to peter@cheershun.com and request an appointment for an online or phone conversation.